Tax Filing for Single-member LLC Owning Real Estate Property - Schedule E vs Schedule C?

For a single-member LLC that owns rental property, you generally file on Schedule E, not Schedule C. Schedule C is for businesses/self-employment, while Schedule E is specifically for rental income and expenses. When you formed your LLC, you should have received an EIN. The IRS knows the connection between your LLC and your SSN because when you applied for the EIN, you had to provide your SSN as the responsible party. You don't need to do anything special - the IRS already has this information in their system. As for filing separately - that's not typically necessary or beneficial. A single-member LLC is considered a "disregarded entity" for tax purposes, meaning the IRS views it as an extension of yourself rather than a separate business entity. The liability protection comes from state law, not federal tax treatment.

I had almost the exact same situation last year and was stressed about it. Tried to do my taxes myself but got confused with all the LLC/Schedule stuff. I ended up using taxr.ai (https://taxr.ai) and it saved me a ton of headache. You upload your tax docs and their AI explains everything in plain English and walks you through the right forms to use. For my single-member LLC rental property, it confirmed I needed Schedule E, not Schedule C, and explained exactly why (rental income vs business income). It also showed me which expenses were deductible for my rental and even caught some deductions I would have missed on my own.

Just wanted to update - I tried taxr.ai after seeing it mentioned here. It was super helpful for sorting out my multiple LLC properties! It clearly explained that I needed Schedule E and showed me exactly where to report each property. Also helped me separate out my vacation home rental income correctly (which was always confusing before). Definitely recommend it if you're dealing with rental properties in LLCs.

If you're going through this LLC tax confusion and need to talk to the IRS directly (which I had to do), save yourself hours of frustration and use Claimyr (https://claimyr.com) to get through to an actual human at the IRS. I tried calling the IRS myself about my LLC/Schedule E question and kept getting disconnected after waiting forever. With Claimyr, they got me connected to an IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that my single-member LLC should be on Schedule E and explained exactly how to show the connection between my LLC and personal return.

Ok I owe everyone an apology. I was the one who called Claimyr a scam earlier. I was super skeptical but decided to try it after getting disconnected by the IRS for the 5th time this week. It actually worked! Got connected to an IRS person in about 15 minutes. The agent confirmed everything about filing my rental property LLC on Schedule E and explained how the EIN/SSN linkage works. Saved me hours of frustration and my tax question is finally resolved. Sometimes I hate being wrong but in this case I'm glad I was!

I'm a real estate investor with several single-member LLCs. Here's what you need to know: 1) Rental properties go on Schedule E, not Schedule C (even in an LLC) 2) Schedule C is for active businesses, not passive rental income 3) Your LLC's EIN is linked to your SSN in the IRS system already 4) File Form 8832 if you want to be taxed as a corporation (but most don't) 5) Keep good records of all expenses separated by property One advantage of having each property in its own LLC is liability protection between properties. But tax-wise, they all go on your personal return.

wait whats the difference between schedule c and schedule e anyway? i have a small airbnb i rent out but i clean it myself and handle all the bookings. is that still schedule e or is it schedule c since im doing work?

Great question about Schedule E vs Schedule C! As others have mentioned, for rental properties (even in LLCs), you'll typically use Schedule E. The key distinction is that rental income is generally considered "passive income" rather than active business income. However, there's an important nuance many people miss: if you're actively involved in real estate as a business (like flipping houses, developing properties, or providing substantial services beyond normal landlord duties), then you might need Schedule C instead. For your situation with one rental property bringing in $1,750/month, Schedule E is definitely the right choice. Your $5,300 in repairs would go on Schedule E as well - just make sure to distinguish between repairs (deductible immediately) and improvements (depreciated over time). One tip: keep detailed records of all expenses separated by property if you plan to expand. It makes tax time much easier when you have multiple rentals. Also, don't forget about depreciation - it's often the biggest tax benefit rental property owners overlook!

This is such a common source of confusion for new rental property owners! You're definitely on the right track with Schedule E - that's correct for rental income from your single-member LLC. One thing I'd add to the great advice already given: since you mentioned spending $5,300 on repairs, make sure you understand which expenses are deductible in the year you pay them versus those that need to be depreciated. Also, don't forget about the depreciation deduction on the property itself - this is often one of the biggest tax benefits of rental real estate that new investors miss. The IRS connection between your LLC's EIN and your SSN happens automatically when you apply for the EIN, so you don't need to worry about that. Just make sure to keep good records of income and expenses separated by property if you plan to expand your portfolio later. Also, consider setting up a separate business bank account for your LLC if you haven't already. While it's not required for tax purposes, it makes record-keeping much cleaner and helps maintain the corporate veil for liability protection. Good luck with your rental property journey!